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Bertelsmann’s BMG Music Rights has continued to expand by agreeing to a deal to manage the song catalogs of Fuji Entertainment America’s ARC Music, Six Palms Music and Third Story catalogs in a worldwide deal everywhere outside of Japan and South East Asia.

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We hate to hit replay on this one but following New York Post’s story today that European streaming music service Spotify is close to a deal with Sony Music and thereby close to launch we decided to call a few people to confirm.

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Music industry types must have had been reaching for their tranquilizers this afternoon, following a report that Apple is in early stage talks to buy Spotify. The report spread quickly, as these things do, and some thought it made a lot of sense. So Apple, maker of the world’s most popular music device, the iPod, which already owns the No.1 music download retailer iTunes, would be buying Spotify –the much-loved and critically acclaimed music streaming service, just as it’s finalizing deals to launch in the U.S.? This would be too much to handle for many music executives, who think Apple already holds way too much power.

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(Clarifies earlier post to show McCarroll is not replacing Melrose/Brooks)

EMI, the smallest and most troubled of the four major music companies, took its latest step towards re-focusing under new leader Roger Faxon by appointing the current head of North American creative at EMI Music Publishing as president of the Capitol and Virgin label group in North America.

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Of the many ways the traditional music industry has struggled in the fast evolving digital music world has been understanding who is listening, why they’re listening , when and where they’re listening and find ways to build music-based products and services around that — especially since not as many people are buying music as they used to.

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Apple is shutting down Lala, the Web ‘cloud-based’ music service it bought last December for a rumored $80 million. It has been widely expected that Apple would eventually integrate the music service into the iTunes platform to offer a subscription service based in the cloud.

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It appears to be Music Wednesday on the Internet. On the same day that reports began circulating that Google and Facebook will launch a host of new music features, News Corp’s MySpace is turning up the volume on its own music offering.